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IDC Reports That Official PC Shipments To Nigeria Fell By 57% Year On Year In 2016, Lowest Level In Nine Years

According to the International Data Corporation (IDC), PC shipments to Nigeria fell 57,1% year on year in 2016, their lowest level in nine years. The 57,1% drop in PC shipments to Nigeria in 2016 equates to a total of 156,511 units.

"To make matters worse, the government excluded IT products from accessing foreign currencies at the interbank rate, pushing channel partners to obtain foreign currencies from the unofficial market, where rates are typically 40–50% higher"Babatunde Afolayan, Senior Research Analyst, IDC West Africa

"Nigeria's currency – the naira – has been losing considerable value against the U.S. dollar for a number of years now," says Babatunde Afolayan, a senior research analyst at IDC West Africa.

The IDC believes the main contributonging facyors to this steep decline include unstable exchange rates, poor economic performance, and the steady rise of refurbished gray market.

"To make matters worse, the government excluded IT products from accessing foreign currencies at the interbank rate, pushing channel partners to obtain foreign currencies from the unofficial market, where rates are typically 40–50% higher." said Afolayan.

The import of refurbished PCs – primarily from the UAE, the U.K., and China – is proving particularly challenging for Nigeria's official PC selling channels as they typically outnumber official shipments of primary PCs.

"At the same time, the volume of gray market imports is steadily increasing," said Afolayan. "One of the main reasons is the lower price points at which resellers can purchase products from gray market sources, giving them better profit margins than official channels."

Among the strategies being implemented by Nigeria's government to improve the purchasing ability of consumers in Nigeria, is a consideration by the Central Bank of Nigeria of including IT products for interbank rates when it comes to accessing foreign currencies.

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